updated 10:00 am EST, Mon January 31, 2011

Verizon runs Android sale in iPhone run-up

Verizon today started up a sale on its smartphone lineup ahead of its iPhone launch. Some of its most important devices, including the HTC Droid Incredible, Motorola Droid 2 R2-D2, and both Samsung's Continuum and Fascinate, have had their prices drop by as much as half to $100. The company is promising 10 days of "sweet deals" that line up with the iPhone's February 10 date.

Most of Motorola's line is exempt, and high-end phones like the Droid X or Droid Pro still cost $180 to $200 on contract.

The broad-based discounting is uncharacteristic of Verizon and is likely meant to keep customers buying smartphones in the roughly two weeks before Apple joins the network. Verizon has had high expectations for the iPhone and has already seen the effect of customers avoiding Android devices in anticipation. Motorola had experienced a sales downturn even in the weeks before Verizon confirmed the deal as many assumed based on leaks and statements that the iPhone would be ready soon.

The sale has come just after slips confirming that it was dropping rebates on all smartphones priced at $150 or higher. Most have pinned this change on Apple as well, as it often exerts strict control over pricing. The change has been considered a positive by some since it prevents Verizon from putting the pre-rebate price significantly higher and skimming extra profit from those who forget to mail in their rebates properly. [viaBGR]

and the TAX will be?

Just picked up a new "$20" phone at the Verizon store .. but found the sales tax was an additional $20. Why? The "sales taxable price" of the phone was not twenty, but instead was $200. So look for those one-hundred-dollar droids to have a hidden tax amount that you're not expecting.

Note: this may not be Verizon's fault -- may be some FCC requirement. But either way it seems like a rip to me.

Re: and the tax will be

That's not an FCC requirement, since that's sales tax, and the FCC doesn't tax sales. That's a sales tax rule. They need to charge tax on the full price because the price of the phone is the price of the phone. It is still chalked up as a $200 sale, so they need to pay sales tax. And Verizon isn't going to cover that.

But that's your basic consumer. Can't be happy getting a $200 phone for $40, they're whining because it wasn't $20.